Which of the following statements does not describe a requirement that must be met in a tax-deferred reverse triangular merger?
A. The continuity of business enterprise test must be met with respect to the target corporation.
B. The 40 percent continuity of interest test must be met with respect to the stock transferred from the acquisition corporation to the target corporation shareholders.
C. The target corporation shareholders must receive voting stock in the acquiring corporation.
D. The target must hold substantially all of the target corporation's properties and the properties of the acquisition subsidiary after the merger.
Answer: B
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